Mukesh Ambani, IPL became a gold mine for Shah Rukh Khan, earnings of Arabs every year – Good News for Mukesh Ambani Shahrukh Khan ipl franchises Valuation Skyrockets original Teams Cold Reach 2 Billion Doller Each
A senior official of a prominent IPL team said on the condition of anonymity- the current eight franchises are earning well every year. Therefore, they will get much more evaluation than GT, which is still in loss. It is true that GT is still a new team and has not started earning profits. In contrast, the old teams have been doing well for years and also have a big fan base. Therefore, these teams are more attractive for investors. Some IPL franchises have created a strong global brand by purchasing teams in the Cricket League outside India.
IPL franchise owners, including Reliance Industries, Sun TV Network, RPSG Group, JSW GMR Cricket and Shah Rukh Khan’s Knight Riders, have achieved franchises in the Cricket League in South Africa, UAE, England and America. An executive said- This diversification not only strengthens their brand, but also provides the required scale to consider being listed in the stock market. This means that these teams are now making their identity not only in India but all over the world. This further enhances their brand value.
Santosh N, managing partner of Valuction Service Provider D&P Advisory, said that the GT deal of Torrent Group has set up a new benchmark for IPL team valuation. He said- If Gujarat Titans can get such a high price after a few years, other franchisees will follow it in terms of attracting investors. Ajimon Francis, managing director of Brand Finance India, said Torrent achieved a majority stake in GT at premium, and a similar premium could be applied to other teams.
He said- Most of the big team brands are now global brands in many geographical areas and in many commercial forms. Several firms, including Holiehan Loki, Brand Finance and D&P Advisory, have evaluated the IPL brand over $ 10 billion, estimated in 2024 ranging from $ 10 billion to $ 16 billion. This bounce in the brand value by the Board of Control for Cricket in India (BCCI) in 2022 with the Dizney Star India and Viacom 18 (which has now merged) with media rights deal of Rs 48,390 crore and with companies like Tata Sons, My11CIRCLE, CEAT and Angelone with companies Multi-yearly sponsorship deals worth Rs 4,000 crore.
According to the financial data of the tofler, the joint revenue of ten IPL franchisees increased to Rs 6,797 crore in FY 24 to Rs 6,797 crore as compared to the previous year’s Rs 3,082 crore. Despite an increase in the evaluation of IPL franchise, Francis of Brand Finance believes that no franchise will sell a majority stake, and even those who want to reduce will only sell minority stakes because most of the owner will sell the teams to control the teams Want He said- Some small offers for cells may be secretly with new investors to change the first one.
An example is PE firm Redbird Capital Partners who are allegedly looking to sell their stake in Rajasthan Royals at premium. According to Santosh, some factors carrying these values up include FOMO (Fear of Missing Out) effect, as many investors and large corporates are pursuing limited number of properties. He said- IPL is a trophy asset and comes with ‘the right to Hankane’, and you are ready to pay the premium for it. Due to the limited properties available, the price at which they may have a transaction may be much higher than their actual internal value.
